Atom Bank is raising £100 million and getting into mortgages

App-only
challenger bank is raising £100 million ($129.6 million) from its
shareholders to break into mortgages,
according to Sky News.

The fintech startup, which opened to customers earlier this year,
reportedly wants to raise money funds so it has enough regulatory
capital to break into new products such as mortgages, as well as
fund losses, Sky News claims.

A spokesperson for Atom told Business Insider: "We are looking
for capital to support our ambitious growth plans and are very
pleased to enjoy the support of a blue-chip shareholders
register."

They did not comment on mortgage plans, however, the email
signature of Atom's Head of PR strongly hints that the startup is
on the verge of launching a mortgage product:

source

Oscar Williams-Grut/Business Insider/Atom

A
"Residential Mortgage" button on Atom's website promises it will
be: "Spreading the Atom magic, available through mortgage brokers
very soon."

Atom Bank is the brainchild of Metro Bank cofounder Anthony
Thompson and Mark Mullen, the former CEO of phone-only bank First
Direct. It was valued at £150 million before it had even launched
when Spanish bank BBVA last year invested £45 million for a 30%
stake.

Other investors include star fund manager
Neil Woodford and
Jim O'Neill, the former Goldman Sachs economist famous for
coining the term BRICs to refer to Brazil, Russia, India, and
China.

40,000 people have downloaded Atom's app since it launch in April
but only 2,000 have actually opened accounts,
according to the Financial Times. The FT reports that the
startup currently has £18 million of customer savings.

Atom is one of a number of app-only banks in Britain, although it
is the first to officially launch. Others include
Monzo,
Starling, and
Tandem.